GENERAL

PRINCIPLES

LABOR LAW and SOCIAL LEGISLATIONS 2005 BAR EXAMINATION QUESTIONS and ANSWERS
Questions
Answers
Rights of
Manageme
Benefits
Unilateral Little Hands Garment Company, an
ALTERNATIVE ANSWER:
the
nt
ly Given
unorganized manufacturer of
(b) Yes, because it is suffering
Employer
Prerogative
childrens apparel with around 1,000 losses for the first time;
workers, suffered losses for the first
(c) Yes, because this is a
time in history when its US and
management prerogative
European customers shifted their
which is not due any legal or
huge orders to China and
contractual obligation; An
Bangladesh. The management
employer cannot be forced to
informed its employees that it could
continue giving a benefit,
no longer afford to provide
being given as a management
transportation shuttle services.
prerogative, when it can no
Consequently, it announced that a
longer afford to pay for it. To
nominal fare would be charged
hold otherwise, would be to
depending on the distance traveled
penalize the employer for his
by the workers availing of the
past generosity. (Producer's
service.
Bank of the Philippines v.
NLRC, G.R. No. 100701,
Was the Little Hands Garments
March 28, 2001)
ALTERNATIVE ANSWER:
Company within its rights to
(d) No, because this amounts
withdraw this benefit which it had
to a diminution of benefits
unilaterally been providing to its
which is prohibited by the
employees?
Labor Code;
(e) No, because it is a fringe
Select the best answer(s) and briefly
benefit that has already
explain your reason(s) therefor.
ripened into a demandable
right or entitlement. A
(a) Yes, because it can withdraw a
company practice favorable to
benefit that is unilaterally given;
employees had indeed been
(b) Yes, because it is suffering losses established and the payments
made pursuant thereto,
for the first time;
ripened into benefits enjoyed
(c)
Yes,
because
this
is
a by them. And any benefit and
management prerogative which is supplement being enjoyed by
not due to any legal or contractual the employees cannot be
obligation;
reduced, diminished,
discontinued or eliminated by
(d) No, because this amounts to a
the employer by virtue of

diminution of benefits which

prohibited by the Labor Code;

is

(e) No, because it is a fringe benefit

that has already ripened into a
demandable right or entitlement.
(10%)

LABOR
RELATIONS

CBA

Certificatio
n Election

(1.) As Human Resources

Department (HRD) manager of EZ
Components, an unorganized
manufacturer of electric and
electronic components for household
appliances, you are suddenly
confronted with demands for
recognition and collective bargaining
negotiations from two competing
labor unions. They both claim to
represent all the rank-and-file
employees. Union A is led by a
moderate faction, while Union B is
affiliated with a militant federation

Article 100 of the Labor Code

of the Philippines which
prohibits the diminution or
elimination of the employer of
the employees' existing
benefits. (Sevilla Trading Co.
v. Semana, G.R. No. 152456,
April 28, 2004)
ALTERNATIVE ANSWER:
(b) Yes, because it is suffering
losses for the first time;
(d) No, because this amounts
to a diminution of benefits
which is prohibited by the
Labor Code. You cannot
compel an employer to
continue paying the benefits if
it is suffering from serious
business losses. However, the
benefit has already ripened
into an employer practice or
policy, and therefore it cannot
be withdrawn without
violating Article 100 of the
Labor Code on non-diminution
of benefits.
ALTERNATIVE ANSWER:
(d) Petition the Bureau of
Labor Relations to conduct a
certification election to
determine which union really
represents the majority of the
employees in the bargaining
unit. (Ilaw at Buklod ng
Manggagaiva [IBM] v. Calleja,
G.R. No. 84685, February
23,1990)
ALTERNATIVE ANSWER:
(c) Ignore the demands of
either union since you cannot

identified with leftist ideology.

be compelled legally to deal

with them at this stage.

Which of the following courses of

action should you take to best
protect the interests of your
company and employees?
(a) Recognize Union A as the rightful
bargaining representative because it
will be more reasonable to deal with;
(b) Recognize Union B because you
do not want to antagonize its leftist
connections and foment inter-union
conflicts;
(c) Ignore the demands of either
union since you cannot be compelled
legally to deal with them at this
stage; or

Coverage

Non-Union
Members

Religious
Sect

(d) Petition the Bureau of Labor

Relations to conduct a certification
election to determine which union
really represents the majority of the
employees in the bargaining unit;
(10%)
A group of employees in XYZ Factory
belonging to a religious sect, in
conformity with the teachings and
dictates of their religion, refused to
join the labor union in the factory.
The labor union was able to
negotiate a substantial wage
increase in its collective bargaining
agreement with management. A
provision therein stated that the
wage increase would be paid to the
members of the union only in view of
a closed shop union security clause
in the new agreement. The members

SUGGESTED ANSWER:
No, the CBA provision is not
valid. The benefits of a CBA
are extendible to all
employees regardless of their
membership in the union
because to withhold the same
from non-union members
would be to discriminate
against them. (National
Brewery & Allied Industries
Labor Union of the Philippines
v. San Miguel Brewery, Inc.,
G.R. No. L-18170, August

of the sect protested and demanded

that the wage increase be extended
to them. The officers of the union
countered by demanding their
termination from the company
pursuant to the closed shop
provision in the just-concluded CBA.

(a) Is the CBA provision valid?

(b) Should the company comply with
the unions demand of terminating
the members of the religious sect?
(6%)

Wage
Increase
Coverage;

Non-Union
Employees

(b) May a rank-and-file employee,

who is not a member of the union
representing his bargaining unit,
avail of the wage increases which the
union negotiated for its members?
(4%)

31,1963)

SUGGESTED ANSWER:
No. The right to join includes
the right not to join by reason
of religious beliefs. Members
of said religious sect cannot
be compelled or coerced to
join the labor union even
when the union has a closed
shop agreement with the
employer; that in spite of any
closed shop agreement,
members of said religious sect
cannot be refused
employment or dismissed
from their jobs on the sole
ground that they are not
members of the collective
bargaining union. (Victoriano
v. Elizalde Rope Workers'
Union, G.R. No. L-25246,
September 12,1974)
SUGGESTED ANSWER:
Yes, because the bargaining
representative (union) does
not act for its members alone.
It represents all the
employees covered by the
bargaining unit. (Mactan
Workers Union v. Aboitiz, G.R.
No. L-30241, June 30, 1972)

LABOR
STANDARDS

ULP

Subject to
Criminal
Prosecution

Employme
nt

Radio-TV
Show Host

(b) Is the commission of an unfair

labor practice by an employer
subject to criminal prosecution?
(3%)

Expiration
of Term

(1.) Malyn Vartan is a well-known

radio-TV talk show host. She signed a
contract with XYZ Entertainment
Network to host a one-hour daily talk
show where she interviews various
celebrities on topical subjects that
she herself selects. She was paid a
monthly remuneration of
P300,000.00. The program had been
airing for almost two years when
sponsors advertising revenues
dwindled, constraining the network
to cancel the show upon the
expiration of its latest contract with
Ms. Vartan. The talk-show host
protested the discontinuance of her
monthly talent fee, claiming that it
was tantamount to her illegal

However, nonmembers who

avail of CBA benefits are
required under the law to pay
agency fees.
SUGGESTED ANSWER:
Yes, because unfair labor
practices are not only
violations of the civil rights of
both labor and management
but are also criminal offenses
against the State which shall
be subject to prosecution and
punishment. (Article 247,
Labor Code; See also B.P. Big.
386 as amended by R.A. No.
6715). However, the criminal
aspect can only be filed when
the decision of the labor
tribunals, finding the
existence of unfair labor
practice, shall have become
final and executory.
ALTERNATIVE ANSWER:
As the network's legal
counsel, I will argue that Ms.
Vartan is under contract on a
fixed term employment basis.
The network cancelled the
show "upon the expiration of
its latest contract with Ms.
Vartan." Hence, this does not
involve dismissal but an
expiration of term. (Felix v.
Buenaseda, G.R. No. 109704,
January 17,1995; St.
Theresa's School of
Novaliches Foundation v.
NLRC, G.R. No. 122955, April
15, 1998)
ALTERNATIVE ANSWER:

dismissal from the network since she

has already attained the status of a
regular employee.

(a) As the networks legal counsel,

how would you justify its decision to
cancel Ms. Vartans program which
in effect terminated her services in
the process?
(b) As counsel for the talk-show host,
how would you argue your case?
(6%)

As the network's counsel,

there was no termination of
her services, only the
expiration of her contract,
being an independent
contractor. (Sonza v. ABSCBN,
G.R. No. 138051, June 10,
2004)

ALTERNATIVE ANSWER.
As a radio-TV talk show host,
Ms. Vartan is performing an
activity which is necessary
and desirable in the usual
trade or business of XYZ
Entertainment Network.
Hence, Ms. Vartan is a regular
employee and cannot be
terminated except for cause
and only after due process.
The cancellation of the
program is tantamount to
closure but XYZ
Entertainment Network did
not comply with the
procedural requirements of
law, i.e., 30 days notice to Ms.
Vartan and to DOLE prior to
the intended date of
termination.
ALTERNATIVE ANSWER:
As counsel for the talk show
host, I will argue that she is a
regular employee. First, she
performs job that is necessary
and desirable to the nature of
the business of the employer;
Second, she serves for at least
one (1) year which is an

Employme
nt

Women

Sexual
Harassme
nt Act

(2.) Carissa, a comely bank teller,

was due for her performance
evaluation which is conducted every
six months. A rating of outstanding
is rewarded with a merit increase.
She was given a below average
rating in the last two periods.
According to the banks personnel
policy, a third rating of below
average will result in termination.
Mr. Perry Winkle called Carissa into
his office a few days before
submitting her performance ratings.
He invited her to spend the night
with him in his rest house. She
politely declined. Undaunted, Mr.
Winkle renewed his invitation, and
Carissa again declined. He then
warned her to watch out because
she might regret it later on. A few
days later, Carissa found that her
third and last rating was again
below
average.chanroblesvirtualawlibrary
Carissa then filed a complaint for
sexual harassment against Mr.
Winkle with the Department of Labor
and Employment. In his counteraffidavit, he claimed that he was
enamored with Carissa. He denied
having demanded, much less
received any sexual favors from her
in consideration of giving her an
outstanding rating. He also alleged
that the complaint was premature
because Carissa failed to refer the
matter to the Committee on Decorum

indication of regular
employment.
SUGGESTED ANSWER:
I will hold Mr. Perry Winkle
guilty of sexual harassment.
This resolution is predicated
mainly upon the following
considerations:
(1) Mr. Perry Winkle
exercises authority,
influence or moral
ascendancy over
Carissa;
(2) Mr. Winkle's
insistence in inviting
Carissa "to spend the
night with him in his
rest house" implies a
request or demand for
a sexual favor;
(3) Mr. Winkle's
warning clearly
manifests that the
refusal of the sexual
favor would jeopardize
Carissa's continued
employment; and
(4) Mr. Winkle's
invitation for a sexual
favor will result in an
intimidating, hostile, or
otherwise offensive
working environment
for Carissa.
Carissa is correct in stating
that there was no need for
prior referral to the
Committee on Decorum and

and Discipline for investigation and

resolution before the case against
him was filed. In her reply affidavit,
Carissa claimed that there was no
need for a prior referral to the
Committee on Decorum and
Discipline of her complaint.

Recruitme
nt and
Placement

Illegal
recruitment
to
economic
sabotage

Resolve the case with reasons. (5%)

(1.) During the open forum following
your lecture to a group of managers
and HRD personnel, you were asked
the following questions:cralaw
(a) What qualifying circumstances
will convert illegal recruitment to
economic sabotage, thus
subjecting its perpetrator or
perpetrators to a penalty of life
imprisonment and a fine of at least
P500,000.00? (3%)

Large Scale

(2.) Maryrose Gandas application for

Discipline of her complaint

because nothing in the law
precludes the victim of sexual
harassment from instituting a
separate and independent
action for damages and other
affirmative relief. (Sec. 6, R.A.
No. 7877)
SUGGESTED ANSWER.
Under Article 38(b) of the
Labor Code, as amended by
P.D. No. 2018, it provides that
illegal recruitment shall be
considered an offense
involving economic sabotage
if any of the following
qualifying circumstances
exists:
(1) When illegal
recruitment is
committed by a
SYNDICATE, requiring
three or more persons
who conspire or
confederate with one
another in carrying out
any unlawful or illegal
transaction, enterprise
or scheme;
When illegal recruitment is
committed in a LARGE
SCALE, as when it is
committed against three or
more persons individually or
as a group. (People v.
Navarra, G.R. No. 119361,
February 19, 2001; See also
Sec. 6 of R.A. No. 8042)
ALTERNATIVE ANSWER:

Illegal
Recruitmen
t

Wages

Holiday Pay

the renewal of her license to recruit

workers for overseas employment
was still pending with the Philippine
Overseas Employment
Administration (POEA).
Nevertheless, she recruited Alma
and her three sisters, Ana, Joan and
Mavic, for employment as
housemaids in Saudi Arabia.
Maryrose represented to the sisters
that she had a license to recruit
workers for overseas employment.
Maryrose also demanded and
received P30,000.00 from each of
them for her services. However,
Maryroses application for the
renewal of her license was denied,
and consequently failed to employ
the four sisters in Saudi Arabia.
The sisters charged Maryrose with
large scale illegal recruitment.
Testifying in her defense, Maryrose
declared that she acted in good faith
because she believed that her
application for the renewal of her
license would be approved. Maryrose
adduced in evidence the Affidavits of
Desistance which the four private
complainants had executed after the
prosecution rested its case. In the
said affidavits, they acknowledged
receipt of the refund by Maryrose of
the total amount of P120,000.00 and
indicated that they were no longer
interested to pursue the case against
Maryrose. Resolve the case with
reasons. (5%)
During the open forum following
your lecture before members of

Illegal recruitment is defined

by law as any recruitment
activities undertaken by nonlicenses or non-holders of
authority. (People v. Senoron,
G.R. No. 119160, January
30,1997) And it is large scale
illegal recruitment when the
offense is committed against 3
or more persons, individually
or as a group. (Article 38[b],
Labor Code)
In view of the above,
Maryrose is guilty of large
scale illegal recruitment. Her
defense of good faith and the
Affidavit of Desistance as well
as the refund given will not
save her because R.A. No.
8042 is a special law, and
illegal recruitment is malum
prohibitum. (People v. Saulo,
G.R. No. 125903, November
15, 2000)

ALTERNATIVE ANSWER:
With the execution of the
affidavit of desistance by the
complainants and the refund
made by Maryrose, the case
against her for large scale
illegal recruitment will surely
fail.

SUGGESTED ANSWER:
If unworked, the covered

various unions affiliated with a labor

federation, you were asked the
following questions:cralaw
(a) Araw ng Kagitingan and Good
Friday are among the 10 paid
regular holidays under Article 94 of
the Labor Code. How much will an
employee receive when both holidays
fall on the same day? (4%)

Working
Hours

Compresse
d Work
Week

(d) Under what conditions may a

compressed work week schedule
be legally authorized as an exception
to
the
eight-hour
a
day
requirement under the Labor Code?
(4%)

employees are entitled to at

least 200% of their basic
wage, because to do
otherwise would reduce the
number of holidays under EO
No. 203. If worked, the
covered employees are
entitled to compensation
equivalent to at least 300% of
their basic wage because they
are entitled to the payment
not only of the two regular
holidays, but also of their
regular wage, plus the
premium thereof. (DOLE
Explanatory Bulletin on
Workers' Entitlement to
Holiday Pay on 9 April 1993,
Araw ng Kagitingan and Good
Friday)
ALTERNATIVE ANSWER:
The conditions for an
allowable "compressed work
week" are the following: the
workers agree to the
temporary change of work
schedule and they do not
suffer any loss of overtime
pay, fringe benefits or their
weekly or monthly take-home
pay. (DOLE Explanatory
Bulletin on the Reduction of
Workdays on Wages issued on
July 23, 1985)
ALTERNATIVE ANSWER:
"Compressed work week" is
resorted to by the employer to
prevent serious losses due to
causes beyond his control,
such as when there is a

TERMINATION
OF
EMPLOYMENT

Dismissal

Just Cause

Independe
nt
Contractor

(1.) Antonio Antuquin, a security

guard, was caught sleeping on the
job while on duty at the Yosi
Cigarette Factory. As a result, he was
dismissed from employment by the
Wagan Security Agency, an
independent contractor. At the time
of his dismissal, Antonio had been
serving as a watchman in the factory
for many years, often at stretches of
up to 12 hours, even on Sundays and
holidays, without overtime, nighttime
and rest day benefits. He thereafter
filed a complaint for illegal dismissal
and non-payment of benefits against
Yosi Cigarette Factory, which he
claimed was his actual and direct
employer.

substantial slump in the

demand for his goods or
services or when there is lack
of raw materials. (Explanatory
Bulletin on the Reduction of
Workdays on Wages Issued by
DOLE, July 23,1985)
SUGGESTED ANSWER:
This is a case involving
permissible job contracting.
Antonio's charge of illegal
dismissal against Yosi
Cigarette Factory will not
prosper. Wagan Security
Agency, an independent
contractor, is Antonio's direct
employer. Yosi is only
Antonio's indirect employer.
By force of law, there is in
reality no employer-employee
relationship between Yosi and
Antonio. (Baguio v. NLRC,
G.R. Nos. 79004-08, October
4, 1991)

As the Labor Arbiter assigned to

hear the case, how would you
correctly resolve the
following:cralaw
(a) Antonios charge of illegal
dismissal; and
(b) Antonios claim for overtime and
other benefits. (6%)

SUGGESTED ANSWER:
I will dismiss Antonio's claim
for overtime and other
benefits for lack of merit as
against Yosi. In legitimate job
contracting, the principal
employer (Yosi) becomes

Employee

Payroll
Reinstatem
ent

(c) What is meant by payroll

reinstatement and when does it
apply? (4%)

Contractual
Worker
vs.
Casual
Worker

How is the project worker different

from a casual or contractual worker?
Briefly explain your answers.

jointly and severally liable

with the job contractor
(Wagan) only for the payment
of the employee's (Antonio)
wages whenever the
contractor fails to pay the
same. Other than that, the
principal employer (Yosi) is
not responsible for any other
claim made by the employee
(Antonio). (San Miguel Corp.
v. MAERC Integrated
Services, Inc., G.R. No.
144672, July 10, 2003)
SUGGESTED ANSWER:
"PAYROLL
REINSTATEMENT" is one
where an employee is paid his
monthly salary without
making him perform actual
work. It applies in termination
cases where the labor court
declares the dismissal illegal
and orders reinstatement of
the employee, but the
employer does not want to
actually or physically
reinstate him and instead, at
the employer's option, merely
reinstates the employee in the
payroll pending appeal.
ALTERNATIVE ANSWER:
A "CONTRACTUAL WORKER"
is a generic term used to
designate any worker covered
by a written contract to
perform a specific
undertaking for a fixed
period. On the other hand, a
"PROJECT WORKER" is used

to designate workers in the

construction industry, hired to
perform a specific
undertaking for a fixed
period, co-terminus with a
project or phase thereof
determined at the time of
the engagement of the
employee. (Policy Instruction
No. 19, DOLE) In addition, to
be considered a true project
worker, it is required that
a termination report be
submitted to the nearest
public employment office
upon the completion of the
construction project. (Aurora
Land Projects Corp. v. NLRC,
G.R. No. 114733, January 2,
1997) In contrast, there is no
such requirement for an
ordinary contractual worker.
ALTERNATIVE ANSWER:
A PROJECT WORKER
performs job that is necessary
and desirable to the nature of
the business of the employer.
On the other hand, a CASUAL
WORKER performs job that is
not necessary or desirable to
the nature of the business of
the employer. (Art. 280, Labor
Code)
A project worker becomes a
regular employee if the
employer fails to submit as
many reports to the DOLE on
terminations as there were
projects actually finished.
(Audion Electric Co. v. NLRC,

Employee

Project
Employees
vs.
Casual
Employees

(2.) Mariano Martillo was a mason

employed by the ABC Construction
Company. Every time that ABC had a
project, it would enter into an
employment contract with Martillo
for a fixed period that coincided with
the need for his services, usually for
a duration of three to six months.
Since the last project involved the
construction of a 40-storey building,
Martillo was contracted for 14
months. During this period, ABC
granted wage increases to its regular
employees, composed mostly of
engineers and rank-and-file
construction workers as a result of
the just concluded CBA negotiations.
Feeling aggrieved and discriminated
against, Martillo and other similarlysituated project workers demanded
that the increases be extended to
them, inasmuch as they should now
be considered regular employees and
members of the bargaining unit.

(a) If you were ABCs legal counsel,

how would you respond to this
demand?

G.R. No. 106648, June 17,

1999) On the other hand, a
casual worker becomes a
regular employee if he has
rendered service for at least
one (1) year whether the same
is continuous or broken. (Art.
280, Labor Code)
ALTERNATIVE ANSWER:
The demand is without legal
basis. The simple fact that the
employment of petitioners as
project employees had gone
beyond one (1) year does not
detract from, or legally
dissolve, their status as
project employees. The
second paragraph of Article
280 of the Labor Code,
providing that an employee
who has served for at least
one (1) year shall be
considered a regular
employee, relates to casual
employees, not to project
employees. (ALUTUCP v.
NLRC, G.R. No. 109902,
August 2, 1994)
In the case of Mercado, Sr. v.
NLRC, G.R. No. 79869,
September 5, 1991, the
Supreme Court ruled that the
proviso in the second
paragraph of Article 280 of
the Labor Code relates only to
casual employees and is not
applicable to those who fall
within the definition of said
Article's first paragraph, i.e.,
project employees. The

Employee

Regular
Employee

Constructi
ve
Dismissal

Kitchie Tempo was one of

approximately 500 production
operators at HITEC Semiconductors,
Inc., an export-oriented enterprise

familiar rule is that a proviso

is to be construed with
reference to the immediately
preceding part of the
provision to which it is
attached, unless there is clear
legislative intent to the
contrary. No such intent is
observable in Article 280 of
the Labor Code.
ALTERNATIVE ANSWER:
If I were ABC's legal counsel,
I will argue that the project
workers are not regular
employees but fixed-term
employees. Stipulation in
employment contracts
providing for term
employment or fixed period
were agreed upon knowingly
and voluntarily by the parties
without force, duress or
improper pressure, being
brought to bear upon the
employee and absent any
other circumstances vitiating
his consent, or where it
satisfactorily appears that the
employer and employee dealt
with each other on more or
less equal terms with no
moral dominance whatever
being exercised by the former
over the latter. (Pangilinan v.
General Milling Corp., G.R.
No. 149329, July 12, 2004)
ALTERNATIVE ANSWER:
The repeated rehiring and the
continuing need of Kitchie's
services for 4 years are

whose business depended on orders

for computer chips from overseas.
She was hired as a contractual
employee four years ago. Her
contracts would be for a duration of
five (5) months at a time, usually
after a one-month interval. Her rehiring was contingent on her
performance for the immediately
preceding contract.
Six months after the expiration of
her last contract, Kitchie went to
HITECs personnel department to
inquire why she was not yet being
recalled for another temporary
contract. She was told that her
performance during her last stint
was below average. Since there
was no union to represent her,
Kitchie seeks your advice as a labor
lawyer about her chances of getting
her job back. What will your advice
be? (5%)

Retiremen
t

Optional
Retirement

(1.) Ricky Marvin had worked for

more than ten (10) years in IGB
Corporation. Under the terms of the
personnel policy on retirement, any
employee who had reached the age
of 65 and completed at least ten (10)
years of service would be

sufficient evidence of the

necessity and indispensability
of her services to HITEC's
business or trade. (Magsalin v.
National Organization for
Working Men, et al., G.R. No.
148492, May 9, 2003)
Where a person thus engaged
has been performing the job
for at least one year, even if
the performance is not
continuous or is merely
intermittent, the law deems
the employment as regular
with respect to such activity
and while such activity exists.
(Paguio v. NLRC, G.R. No.
147816, May 9, 2003)
Hence, Ritchie is considered a
regular employee of HITEC
and as such, she cannot be
terminated except for cause
and only after due process.
ALTERNATIVE ANSWER:
I will advice Kitchie to file a
case of constructive dismissal
with the Regional Arbitration
branch of the NLRC having
territorial jurisdiction over the
workplace of the complainant
because the constant re-hiring
of Kitchie makes her a regular
employee.
SUGGESTED ANSWER:
I will decide the case in
accordance with the
Retirement Law. (R.A. No.
7641) Under the law, Ricky
Marvin is entitled to Optional
Retirement at age 60 since he

compulsorily retired and paid 30

days pay for every year of service.
Ricky Marvin, whose immigrant visa
to the USA had just been approved,
celebrated his 60th birthday recently.
He decided to retire and move to
California where the son who
petitioned him had settled. The
company refused to grant him any
retirement benefits on the ground
that he had not yet attained the
compulsory retirement age of 65
years as required by its personnel
policy; moreover, it did not have a
policy on optional or early
retirement.

has served the Company for at

least 5 years, in fact 10 years
already. He will also receive
22.5 days for every year of
service. (Capitol Wireless v.
Confesor, G.R. No. 117174,
November 13, 1996)

Taking up the cudgels for Ricky

Marvin, the union raised the issue in
the grievance machinery as
stipulated in the CBA. No settlement
was arrived at, and the matter was
referred to voluntary arbitration.

SOCIAL
LEGISLATION
S

GSIS

Death
Benefits

Dependent

24-hour
Duty Rule

If you were the Voluntary Arbitrator,

how would you decide? Briefly
explain the reasons for your award.
(5%)
(1.) Odeck, a policeman, was on
leave for a month. While resting in
their house, he heard two of his
neighbors fighting with each other.
Odeck rushed to the scene intending
to pacify the protagonists. However,
he was shot to death by one of the
protagonists. Zhop, a housemaid,
was Odecks surviving spouse whom
he had abandoned for another
woman years back. When she

ALTERNATIVE ANSWER:
Yes, because under the law, a
dependent is one who is a
legitimate spouse living with
the employee. (Article 167[i],
Labor Code) In the problem
given, Zhop had been
abandoned by Odeck who was
then living already with
another woman at the time of
his death. Moreover, Odeck

learned of Odecks death, Zhop filed

a claim with the GSIS for death
benefits. However, her claim was
denied because (a) when Odeck was
killed, he was on leave; and (b) she
was not the dependent spouse of
Odeck when he died.
Resolve with reasons whether GSIS
is correct in denying the claim. (5%)

was on leave when he was

killed. The 24-hour duty rule
does not apply when the
policeman is on vacation
leave. (Employees'
Compensation Commission v.
Court of Appeals, G.R. No.
121545, November 14, 1996)
Taking together jurisprudence
and the pertinent guidelines
of the ECC with respect to
claims for death benefits,
namely:
(a) that the employee
must be at the place where
his work requires him to be;
(b) that the employee
must have been performing
his official functions; and
(c) that if the injury is
sustained elsewhere,
the employee must
have been executing
an order for the
employer, it is not
difficult to understand
then why Zhop's claim
was denied by the
GSIS. (Tancinco v.
Government Service
Insurance System, G.R.
No. 132916, November
16, 2001)
In the present case, Odeck
was resting at his house when
the incident happened; thus,
he was not at the place where
his work required him to be.

Paternity
Leave

Maternity
Leave

(2.) Mans Weto had been an

employee of Nopolt Assurance
Company for the last ten (10) years.
His wife of six (6) years died last
year. They had four (4) children. He
then fell in love with Jovy, his coemployee, and they got married. In
October this year, Wetos new wife is
expected to give birth to her first
child. He has accordingly filed his
application for paternity leave,
conformably with the provisions of
the Paternity Leave Law which took
effect in 1996. The HRD manager of
the assurance firm denied his
application, on the ground that Weto
had already used up his entitlement
under that law. Weto argued that he
has a new wife who will be giving
birth for the first time, therefore, his
entitlement to paternity leave
benefits would begin to run anew.

Although at the time of his

death Odeck was performing
a police function, it cannot be
said that his death occurred
elsewhere other than the
place where he was supposed
to be because he was
executing an order for his
employer.
ALTERNATIVE ANSWER:
GSIS is correct in denying the
claim not on the grounds
provided in the problem but
for the reason that uniformed
members of the PNP are not
covered by R.A. No. 8291 or
the GSIS Law of 1997.
ALTERNATIVE ANSWER:
The contention of Weto is
correct. The law provides that
every married male is entitled
to a paternity leave of seven
(7) days for the first four (4)
deliveries of the legitimate
spouse with whom he is
cohabiting. Jovy is Weto's
legitimate spouse with whom
he is cohabiting. The fact that
Jovy is his second wife and
that Weto had 4 children with
his first wife is beside the
point. The important fact is
that this is the first child of
Jovy with Weto. The law did
not distinguish and we should
therefore not distinguish.
The paternity leave was
intended to enable the
husband to effectively lend
support to his wife in her

(a) Whose contention is correct, Weto

or the HRD manager?

(b) Is Jovy entitled to maternity leave

benefits? (6%)

SSS;

GSIS;

Beneficiali
ty;

Portabilit
y
Provision

(c) How are the portability

provisions of Republic Act No. 7699
beneficial or advantageous to SSS

period of recovery and/or in

the nursing of the newly born
child. (Sec. 3, RA. No. 8187)
To deny Weto this benefit
would be to defeat the
rationale for the law.
Moreover, the case of Weto is
a gray area and the doubt
should be resolved in his
favor.
ALTERNATIVE ANSWER:
Weto's contention is correct.
R.A. No. 8187 provides that
paternity leave of (7) days
with full pay shall be granted
to all married employees in
the private and public sectors
for the first four (4) deliveries
of the legitimate spouse with
whom he is cohabiting. With
the death of Weto's first wife,
the first (4) deliveries
provided by law, shall apply to
the new legitimate spouse of
Weto with whom he is
cohabiting.
ALTERNATIVE ANSWER:
Since R.A. No. 8282 is silent
on the matter, the doubt
should be resolved in favor of
the second wife.
Yes, Jovy's maternity benefit is
personal to her and she is
entitled under the law to avail
herself of the same for the
first four times of her deliver.
(R.A. No. 8282)
SUGGESTED ANSWER:
Portability provisions of R.A.
No. 7699 shall benefit a

s of RA
7699

and GSIS members in terms of their

creditable employment services in
the private sector or the government,
as the case may be, for purposes of
death, disability or retirement? (3%)

covered worker who transfers

employment from one sector
to another or is employed in
both sectors, whose creditable
services or contributions in
both systems credited to his
service or contribution record
in each of the system and
shall be totalized for purposes
of old-age, disability,
survivorship and other
benefits. (Sec. 3, R.A. No.
7699)
The "portability" provisions of
R.A. No. 7699 allow the
transfer of funds for the
account and benefit of the
worker who transfers from
one system to another.
This is advantageous to the
SSS and GSIS members for
purposes of death, disability
or retirement benefits. In the
event the employees transfer
from the private sector to the
public sector, or vice-versa,
their creditable employment
services and contributions are
carried over and transferred
as well.